Maximising value from your portfolio of gas swing and indexation contracts
18 Jan 10
Author: Lacima Group

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In today’s challenging energy business environment, senior management and company shareholders are demanding ever greater financial scrutiny of any assets that offer flexibility of operation, and thus contain embedded value. In the natural gas markets, there is an increasing focus on gas swing and indexation contracts as sources of hidden, untapped value either on their own or as a portfolio. Having systematic and implementable methods available for the operational management of these contracts on their own or as a portfolio is vital to maximising a company’s value.

This paper presents an overview of the latest techniques that can be employed to value and optimise gas swing and indexation contracts as well as optimise the hedged portfolio outcome.